Calculate the market price of each bond on 23rd April 2021 that issued by AAA Ltd., using the data provided in the table below. What is the current total value of minimum application?
Calculate the market price of each bond on 23rd April 2021 that issued by AAA Ltd., using the data provided in the table below. What is the current total value of minimum application?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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- Calculate the market price of each bond on 23rd April 2021 that issued by AAA Ltd., using the data provided in the table below. What is the current total value of minimum application?
Need step by step full workings on how to calculate cash flow and coupon payment.

Transcribed Image Text:c) Calculate the market price of each bond on 23rd April 2021 that issued by AAA Ltd.,
using the data provided in the table below. What is the current total value of minimum
application?
Time to Maturity
1 YL
2 YL
3 XL
4 YL
5 XC
U.S. Treasury Bond Yield
0.12%
0.14%
0.20%
0.25%
0.27%
0.46%
10 Y
0.67%
Corporate Bonds Fact Sheet
Issuer
AAA Company Ltd.
Issuing date
23rd April 2021
Bond
25th April 2025
expiration date
Face value
$ 1000 per bond.
Minimum
50 Bonds ($ 50,000)
application
Floating Interest Rate. The Interest Rate is the sum of the Market Rate
plus the Margin.
Interest rate
Coupon rate
(annual)
Coupon
payment
Central Government Bond Yield + 1.86% p.a.
Annually (coupon payment is paid on 10th July every year)
Market Yield
4.00%
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